One of the cheapest of enhanced oil recovery methods is cyclic water flooding. The simulation of cyclic water flooding using a flow simulator may be unacceptable due to the rapid flow, which leads to the limitation of the estimated time step, which becomes much lower compared to a conventional water flood. Without taking into account this limitation on the time step, the calculated effect of cyclic water flooding, as a rule, is close to zero. The selection of the optimal values of the cyclic water flooding parameters usually requires multiple simulation runs. To reduce the number of the simulation runs that require a significant time, an effective method for simulating cyclic water flooding of oil fields is suggested. The method allows to select prospective areas in real time as well as to perform an assessment of the impact on the additional oil production of the location of the wells, the period and duration of the cyclic action. The results of the application of the method in some oil fields are demonstrated.